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Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I will tell the witness why I want them and why I think he should have them. This is one of the issues that was identified by the Comptroller and Auditor General. The following is the problem I want to tease out with him. I am reading from his opening statement where he stated: "...the overwhelming majority of our customers who are open and honest in their dealings with the Department and...

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I want Mr. McKeon, as the Accounting Officer, to explain in layman's terms the difference between fraud and error.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: Please, and then answer the question about the difference between fraud and error.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: Mr. McKeon can, of course.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: It is a very important distinction. Mr. McKeon can hold off on the breakdown because I will come to that. Stick to this theme of the difference between fraud and error because it is very important. Mr. McKeon has given the distinction and I accept it. Our understanding of the difference is a shared one. Is fraud a criminal act?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: Is error a criminal act?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: Is there a stigma attached to fraud?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: It is fair to say there would not be the same level of stigma attached to error.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: An error is not deliberate, intentional or has criminal consequences. Fraud is a deliberate act to defraud the State.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: That puzzles me. Every single time Mr. McKeon mentioned fraud, he mentioned error. Going back over his opening statement, it contains the words "fraud and error". That is not an appropriate way to deal with both issues. In process terms, the Department needs to separate instances of fraud from instances of error. The reason is because the media perception when these figures are covered...

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: What is the net level of fraud compared with the net level of error over the five years?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I am posing the questions. The Comptroller and Auditor General can have whatever processes he likes, I am posing the questions. Lumping in fraud and error as one, even in terms of controls, is not the appropriate way to deal with it. One can still deal with them separately. The Secretary General can give us separate figures on fraud, error and overpayments. Then we can see what the...

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: What is meant by overall figure?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: What is the distinction between fraud and error?

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: On the very first payment we deal with, error accounts for 80% while fraud is only 20%. That is a good enough reason these fraud and error figures should be clearly separated.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: They were not in the presentation to us.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I see the net figure but I do not see it broken up between fraud and error. Mr. McKeon's opening statement is important. He has dealt with chapter 16 of the Comptroller and Auditor General's report. Every time he spoke about fraud, he referred to error. With respect, today, he did not give any distinction between fraud and error. Nowhere in his opening statement did he give that...

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I am not convinced that Mr. McKeon did.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: In his concluding remarks, Mr. McKeon said there is a small amount of fraud in the system. He acknowledges that. My point is that in accounting terms and in the substance of where fraud is dealt with, it is dealt with in the context of error as well. The figures are the overall ones and they are not separated. Mr. McKeon should be conscious of that for obvious reasons.

Public Accounts Committee: Comptroller and Auditor General 2016 Report
Chapter 16: Regularity of Social Welfare Payments
Chapter 17: Management of Social Welfare Overpayments
Chapter 18: Department Reviews of welfare Schemes, Social Welfare Appeals Process, Social Insurance Fund
(7 Dec 2017)

David Cullinane: I want to get to the obvious reasons because they were already dealt with.

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